My goals; portfolio

Portfolio

Total value 10,445.67 PLN ( 3,150.67 PLN + 1,030 PLN + 5,556 PLN + 607 PLN + 102 PLN).

10,445.67 = ~$ 4,211

My longterm goal is to achieve 1.2 mln USD in my net assets. That`s enough to retire.
It looks quite ridiculous when you compare it to my current investments but I`m patient and have many years to go ( about 20).

In the future I will sell some property, but it`s a question of years so I`m not discussing it here.

I f I were a big fund manager, I`d have a big problem with making 20 % or more per annum.
As an individual I suspect, I might have some advantage provided my capital is limited.
I`m flexible and don`t have to stick to stocks or bonds.
Silver coins were my best investment this year. They boosted my portfolio from very modest $1,000 in September.
I guess I`ll find more such opportunities in the future.
I only need a reasonable profit/risk ratio ( 2:1 is minimum).

Stocks 3.150.67 PLN

Last week I tried some speculation but I lost 246 PLN.
Before summer holidays I made more than $1.400 in profits here so I can say that I reduced my capital gains tax ;)
I sent 370 PLN from my bank on Friday.
Currently, I have cash and only 18 stocks of Polish refinery Lotos worth 801.9 PLN.

I`m going to buy some stocks instead of mutual funds.
They will be mostly chosen according to their index weight.
In Poland we don`t have a genuine index fund. It`s a shame for this market.

Mutual Funds 1,030 PLN

I converted them to money funds and directly into cash. I don`t like their results. They are worse than stock index. Why should I give those geeks my money to manage ? I will Invest through them next year but really modestly.

Silver Coins 5,556 PLN

The market is quite dynamic. I will sell a few items in December after grading. My engagement here is a bit too big so I need to think about some diversification.

Bank deposit 607 PLN

I treat it as a wallet which I need to use for my investments. The interest is only for peanuts.

Currencies 102 PLN ( 20 GBP)

A Fine

Many years ago I wanted to see a movie on Sunday. My cousin was very enthusiastic about the idea so soon we left his house, bought a newspaper and chose a film to see. The cinema was quite close but teenagers are rather lazy so we decided to take a tram.

In Communist Poland it was difficult to get any tickets at the weekend but we didn`t bother much.
Unfortunately we were caught by a conductor. He was a tall guy ( much taller than 6 feet) so we didn`t even dare to think how to run away.
I was quite smart at that time so I made up a story that we came from a small town to visit our auntie and craved for a movie.
The guy seemed to be impressed but asked for our IDs, anyway.
Of course, we pretended we didn`t have any. Fortunately, he wasn`t very strict and only wanted to take down our data.
So we told him false home and school addresses. The problem was that they were the same.
Again I invented a story that our parents were teachers and we lived at school.

I`m not sure if the guy believed in that story but I felt bad after that and since that time I have never tried any free rides. I always buy tickets.

Why am I writing this on my investing blog?

On Saturday I entered some orders to buy Lotos ( oil refining company) and BMP( venture fund) stocks.
Yesterday I checked my account at 10.00 am. I saw that Lotos order was still pending and I decided to move it from 43.75 to 44.01.
Of course, not only was my order executed but the price plummeted down as low as 43.01.
Luckily, some big fish lifted the price at the end of the session.

Again I feel bad. I broke the rules. My idea is that I NEVER take any decisions when the stock market is open. Only after the bell or before it.

It was only 18 x0.26= 4.68 PLN ($ 1.86) but it was against my system. Therefore, I punished myself with 100 PLN and sent 104.68 PLN ($41) from my current account to the stockbroker.

I have to stay calm, focused and consistent in any market conditions.

p.s.
I will update my portfolio on Friday evening.

I made 10,000 in assets.

Portfolio

Total value 10,131.15 PLN ( 2,845.80 PLN + 1,045.35 PLN + 5,556 PLN + 582 PLN + 102 PLN).

10,131.15 PLN = $ 4,036.41

After only two months I reached my first goal of 10,000 PLN. I stay calm and focused.
Silver coins are still soaring. I`m going to sell some before Christmas. In order to get better prices they will undergo grading. It costs $11 and adds much more value to my coins.
I started to keep some money in a bank deposit at 4,75 % a year but I hope only for some short time.
I don`t consider deposits any investments but rather as signs of my poor skills.

Stocks 2,845.80 PLN

77 x BMP ag = 77 x 8.65 PLN = 666.05 PLN + cash 2179,75 PLN

Stock markets look bad but on Sunday I will analyze some charts and maybe try to speculate on some beaten stocks next week.
BMP stocks need ~ 10 % down to be dumped.

Mutual Funds 1,045.35 PLN

I was going to buy some next week but I don`t like their results and postpone my purchases till the week after. Then I`ll get really tiny stake of 50 PLN in SEB investment funds.
If their value goes below 1,000, I`ll sell the worst one.

Silver coins 5,556 PLN

Current prices:
20 zł Jasna Góra 2005 20 zł 145 PLN

20 zł Noc Świętojańska 2006 355 PLN

20 zł Toruń 2007 4 items 640 PLN

20 zł Kościół w Haczowie 2006 15 items 2850 PLN

20 zł Jacek Malczewski 2003 160 PLN

10 zł Muzeum Polskie w Rapperswilu 2000 130 PLN

10 zł Henryk Wieniawski 2001 200 PLN

10 zł K.I. Gałczyński 2005 3 items 156 PLN

10 zł B.Malinowski 2002 100 PLN

10 zł August II Mocny 2005 85 PLN

10 zł 60 rocznica Powstania Warsz. 2004 55 PLN

10 zł Stanisław Leszczyński bust 2003 115 PLN

10 zł Stanisław August Poniatowski 5 items bust 2005 325 PLN

10 zł Stanisław August Poniatowski figure 3 items 2005 240 PLN

Bank deposit 582 PLN

I added some change. I`m going to use most resources on my fund purchases In December.

Currencies 102 PLN ( 20 GBP)

The most important thing is to keep investing. I`m focused and going to let the compound interest do its job. It needs time to make real big bucks.

My portfolio is getting bigger against the markets

You know, I can`t complain. I withdrew some of my funds from stock markets and keep my coin investments. The raging bull market here makes up for any loses.
Currently my portfolio is bigger again.
Total value 9,500,31 PLN ( 2,887.38 PLN + 1,088.93 PLN + 5,041 PLN + 380 PLN + 103 PLN).
9,500 PLN = $ 3,830

Stocks 2,887.38 PLN

77 x BMP ag = 77 x 9.19 PLN = 707.63 PLN + cash 2,179.75 PLN

Mutual funds 1,088.93 PLN

I sold some and put the resources to my bank deposit

Coins 5041 PLN

They are crazy and I have to update their value again according to the latest Internet transactions.


20 zł Jasna Góra 2005 20 zł value 130 PLN

20 zł Noc Świętojańska 2006 350 PLN

20 zł Toruń 2007 4 items value 560PLN

20 zł Kościół w Haczowie 2006 15 items value 2700 PLN

20 zł Jacek Malczewski 2003 value 100 PLN

10 zł Muzeum Polskie w Rapperswilu 2000 value 130 PLN

10 zł Henryk Wieniawski 2001 value 175 PLN

10 zł K.I. Gałczyński 2005 3 items value 156 PLN

10 zł B.Malinowski 2002 value 100 PLN

10 zł August II Mocny 2005 value 75 PLN

10 zł 60 rocznica Powstania Warsz. 2004 value 55 PLN

10 zł Stanisław Leszczyński bust 2003 value 110 PLN

10 zł Stanisław August Poniatowski 4 items bust 2005 value 220 PLN

10 zł Stanisław August Poniatowski figure 3 items 2005 value 180 PLN


Bank Deposit Emax Plus 380 PLN

I will add some change here from time to time.

Currenicies 103 PLN ( 20 GBP)

Good luck !

Make more money ! About arbitrage and portfolio update

Do you know how to make money using arbitrage?

You buy something at some price in one market and you can sell it instantly at a higher price in another one.
Free market doesn`t offer many such possibilities but they do exist.

As you know, I`m a big fan of silver coins. I don`t want to be repetitive but for me it looks clearer and clearer what to do these days.
Now when the stock market tumbled, real estate sector is torn by subprime loans, bank deposits` and bonds` interests are just ridiculous and dollar is weaker and weaker
you really need something better.

If you`re adventurous, you might try short side of stock market but if your capital is limited it`s rather difficult.

One of the alternatives could be collections, antiques and coins.

Coins are quite easy to sell in Poland at good prices because of the Internet auctions.
So I`m not afraid of investing a few grants.

Now this is a raging bull market. The prices are going up higher and higher almost every single day.
I bought 15 coins of Haczów Church. The prices went mad this week because the coin is not available at its issue price in Polish State Mint shops.
I paid 95 or 100 PLN for each one. Now I can sell them above 130 PLN and expect much more soon.

There are more such silver coins available.

Where`s the trick?

You can buy it now in some branches of Polish bank PKO at 99,90 PLN. My friend goes around Poland on business and he visits all such places and buys quite a lot of them.
He`s so generous that he buys some for me too because I presented this idea to him.

I `m sipping beer in front of TV while my pal is hunting for coins all over the country.
I know it`s only temporary, but I really love that kind of ideas as a lazy man.

Now my portfolio looks better.

Portfolio - total value 8,607.28 PLN =$3,470 ( 2,887.38 PLN + 1,485.59 PLN + 4,131 PLN + 103 PLN).


Stocks 2887.38 PLN

77 x BMP ag stock = 77 x 9.19 PLN = 707.63 PLN + cash 2179.75 PLN

I sold my MCI stocks and synthetic index units.

I won`t buy anything here till 19th November. then I`ll see


Mutual Funds 1485.59

I sold some mid and small caps but still can`t see it in my registers. New purchases are suspended for at least one week.


Coins 4131 PLN


Current value

20 zł Jasna Góra 2005 20 zł 120 PLN

20 zł Noc Świętojańska 2006 300 PLN

4 x 20 zł Toruń 2007 480 PLN

15 x 20 zł Kościół w Haczowie 2006 1,950 PLN

20 zł Jacek Malczewski 2003 95 PLN

10 zł Muzeum Polskie w Rapperswilu 2000 130 PLN

10 zł Henryk Wieniawski 2001 170 PLN

3x 10 zł K.I. Gałczyński 2005 156 PLN

10 zł B.Malinowski 2002 90 PLN

10 zł August II Mocny 2005 75 PLN

10 zł 60 rocznica Powstania Warsz. 2004 55 PLN

10 zł Stanisław Leszczyński 2003 100 PLN

4 x 10 zł Stanisław August Poniatowski bust 2005 220 PLN

3 x 10 zł Stanisław August Poniatowski figure 2005 180 PLN


Currencies 20 GBP = 103 PLN

One short remark at the end : remember to cut losses ! Good luck !

Will US stock market collapse ?

It looks very serious now.
Especially that next week more banks will have to report their REAL losses.

I`ve cut some of my stock investments and I`ll try to look for some alternatives.

I`m happy to announce you that Haczow silver coins which I bought for 95 PLN not long ago are traded at 130 PLN and higher. I have eight of them. I made around $100 profit and expect much more.

I guess it`s time to buy some more.

Tomorrow I will sell a little of my mid and small cap funds. Of course, the money will be reinvested.

I`m not going to lose more than 2 % of my capital in any single transaction. I have to be focused.

Credit crunch worsens

I`ve just read a very gloomy article by Nigel Roubini. He warns that the current credit crunch will only get worse.

What shall I do ?

I don`t want to be too agressive and will not try short sell, anyway.
I`m just going to stay away from bank stocks and monitor my losses. If I get to 2 % loss of my entire capital, I`ll cut any bad transaction for sure.

Today I placed two orders in Polish Stock Exchange. I`m trying to buy BMPag- a venture capital fund and KGHM - a copper mine.

I`m waiting at much lower level than their current prices are at 9.51 PLN and 118.1 PLN respectively.

Portfolio - update

Current Value 6953,70 PLN ( $ 2,770) ( 3007,14 PLN + 1574,56 PLN + 2270 PLN + 102 PLN).

A new month has just started. Time to update my portfolio.

You could wonder why you should bother coming back here ?
The answer is that I show a very unique idea of getting rich at work.
When you read some guides on the topic, you never follow the author how he makes money.
You can only read his memories or some general advice.

I started from the scratch and would like to become a hero from zero.
Just give me some time and watch it.

My current goal is to keep my assets above 7000 PLN(~ $ 2,790) mark at the end of the month.
It`s not very impressive but on 16th September I had only 3003 PLN ( ~$1,200).

I know that investments have different names. Many people are too restricted and stick only to one or two methods.
I don`t treat bonds or CDs as any kind of investments. They are just ordinary wallets protected from inflation.
No investment at all.

INVESTMENTS

Stocks and shares 3007.14 PLN ( $ 1,200)

2 x synthetic index MW20 = 762,5 PLN + 31 shares of MCI x 25,55 PLN = 792,05 PLN + Cash 1452,59 PLN

+ cash 1430 PLN 2.11.07
Yesterday I sent some money to my stockbroker.

Old economy shows weakness proved by rather poor 3q financial results. What`s more, I consider traditional companies rather overvalued.

I think it`s time to turn to new technologies. American economy is now based on such companies Apple ( AAPL), Google ( GOOG) and Microsoft ( MSFT).
I repeat that Google had more advertisement revenues in summer than British most popular TV channel. Can you see the point ?

Subprime mortgage loans hit banks. Expensive commodities don`t help traditional economy and you can`t compete with a Chinese working for a bowl of rice. Only your brain might win.

Therefore, even if the correction movement happens, I will try to get more technology stocks.

My possibilities are restricted now only to the Polish market due to a small capital. Additional costs would kill me so I have to keep away from foreign markets for the time being.

A month ago I bought MCI shares. MCI is a venture capital technology fund. I`ve been close to my stop-loss for a while but still keep them.

Next week I`m going to invest some dosh in a triple play providerMultimedia Polska. They have a very aggressive strategy of conquering the market. I like it.
They also might be a good target for a bigger company in the sector.

Mutual Funds 1574,56 PLN

+0,587263 Unikorona Akcje

In next two weeks I`m not going to buy more because I deposited some funds in my stockbroker`s account.

Silver Coins 2270 PLN

No changes. I will update their value at the end of November

Foreign Currencies 102 PLN

Polish zloty is still strong. I have only 20 GBP. I suspect I may buy some US dollars because I guess Fed can`t cut rates any more.

I encourage everybody to start saving up NOW.
It could be even $50 a month, but JUST DO IT.
The point is that you mustn`t withdraw any funds. So, for the effective strategy`s sake it`s better to invest $ 50 and let them work than $200 and taking them back after a year or so.

The compound interest will do the trick here. Trust me.

Britney Spears spends $5,000 a month on dining out

According to the Times, Britney isn`t broke at all.

She spends almost $5,000 a month on dining out and only $16,000 on clothes.

Of course, she doesn`t bother her beautiful mind with education, savings or investments.

That would be just a waste of time.

I must admit I feel a bit depressed after reading that and started to write a song.

Old economy in trouble, turn to new economy.

Now we can see a division between Old Economy represented by banks Citigroup (C) or oil companies Exxon (XOM) and New Economy embodied in Google( GOOG) or Apple( AAPL).

I choose to follow the leaders. Maybe you don`t know but Google`s advertising revenues surpassed those by ITV1 - the biggest commercial TV channel in Britain. More here in the Times.

In hard times that may come soon I would definitely turn to New Economy.

I just have to wait for some bigger correction movement.

Don`t panic. Stick to your investment plan.